Illinois annualized GDP hits $1 trillion
Illinois economy hits rare note, boosted by Chicago: Today’s Juice, by Greg Hinz
Whatever its woes, Illinois’ economy remains a national leader and sits above that of any other Midwestern state thanks to a boost from the Chicago area.
That’s the gist of a new report from the Illinois Economic Policy Institute, a left-leaning research group, and the Middle Class Renewal Project at the University of Illinois at Urbana-Champaign.
Using new federal data, the report says the size of Illinois’ total economy has passed the $1 trillion mark in annualized GDP. The state first crossed that threshold in the first quarter of 2022, according to quarterly estimates from the US Commerce Department, and hit $1.024 trillion in the second quarter of this year. Illinois is only the fifth state to exceed $1 trillion in annualized GDP, after California, Texas, New York and Florida.
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One note, though: these numbers are in nominal dollars not adjusted for inflation. And the authors admit that Illinois “has grown more slowly than the rest of the United States”
That being said, Illinois’ second-quarter figure is 20% higher than the closest Midwestern state, Ohio ($818 billion), and more than double that of Indiana ( $452 billion). The state’s annualized GDP per nonfarm worker ($170,298) is higher than the national average ($166,538), the report said. And if Illinois were its own country, its economy would be better than that of Poland, Turkey or Sweden.
The report suggests it’s the bottom of the state that’s holding back the state’s overall growth. From 2010 to 2019, Illinois’ overall annualized growth rate was 3.3%, but the southern state’s annualized growth rate was only 2.1%, half the average national 4%.
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Meanwhile, if metro Chicago were its own state, its 3.7% annualized growth between 2010 and 2019 would rank 21st in the nation, according to the study. That’s tied with Ohio and ahead of states like Iowa, Michigan, and Indiana.
And with “good public policies,” the report suggests Illinois could actually double its annualized GDP to $2 trillion by 2040.
Other studies have not been as effective as this one. But economists rarely agree on anything. Take a look and decide for yourself.